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The Engineering Export Promotion Council India (EEPC India) on Monday urged the government to include various steel and aluminium products, especially those produced by MSMEs, in current bilateral trade discussions with the United States. 

The apex engineering exports promotion body also requested that quota and out-of-quota tariff levels be preserved in free trade agreement (FTA) negotiations with the European Union (EU), an official statement said.

The engineering exports body said that the US imposed 50 per cent tariffs under Section 232, which has “significantly impacted” engineering exports, necessitating the inclusion of specified products in the bilateral trade agreement (BTA) negotiation.

"The 50 per cent tariff imposition by the US increases the tariff differential with our competitors to an average of 30 per cent. This definitely impacts our position in the US market. A special support package that can absorb at least 15 per cent of this differential would help us to secure our position," said Pankaj Chadha, Chairman of EEPC India.

Further, EEPC expressed concern over an EU proposal to reduce quotas and increase out-of-quota tariffs to 50 per cent, labelling the move problematic due to exporters' volumes and the exclusion of certain products from FTA discussions.

Additionally, this should be brought under FTA negotiation, and once the FTA is implemented, the tariff should be gradually phased out, Chadha said regarding trade with the EU.

EEPC sought the exemption of stainless-steel long products (categories 14, 15, and 22) from EU tariff-rate quotas, citing their dominance in MSMEs and strategic importance.

For other product categories, the Engineering Exports Promotion Council has suggested increasing the quota volumes.

"It may be ensured that out-of-quota tariffs do not exceed 25 per cent, and the same is gradually phased out over five to six years, especially considering the ongoing FTA negotiations with the EU," Chadha said.